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ICL Multitrading India Ltd has decided to tap the IPO market to fund expansion as bank credit remains tough for small companies in the backdrop of rising bad loans, a company official said on Thursday.

The company, based in north India and engaged in trading various products, is also aiming to go national from current concentration of business in Uttar Pradesh, the official said.

Saddled with bad loans, banks are cautious on fresh lending and have also enforced stringent scrutiny following Reserve Bank of India's orders.

"We are tapping IPO route for a few reasons despite being a zero debt company. Bank credit is not easy now especially for small companies, as rates are also not competitive. Public money is cheap source of fund," ICL Multitrading CEO Sudipta Kr Biswas said Thursday.

Biswas was in the city to participate in the company's IPO roadshow. The company is hoping to raise Rs 178.5 million via the IPO on the National Stock Exchange's SME platform -- NSE Emerge.

Biswas said proceeds of the IPO will be used for scaling up operations in both herbal and food categories that are expected to take the topline to Rs 600 million in the current fiscal from Rs 280 million as on March 2018 as rural growth remains robust for the company.

"We are looking at entering the dairy business soon," he said.

The IPO will open November 19 at a fixed price of Rs 85 a share of face value of Rs 10 each.